Nearly half of landlords believed tenants aged under 35 would be hardest hit by the changes and almost 69% of landlords said they couldn’t see themselves letting to local housing allowance tenants in 2015.
David Salusbury, chairman of the NLA, said: “It’s concerning that so many landlords appear to be planning to withdraw from the LHA market within just three years, as they can no longer afford to let their properties to tenants at the reduced benefit rate.
“In view of the pressures on housing, the private-rented sector will inevitably play an increasingly important role in providing housing to LHA tenants, particularly those aged under 35, who aren’t able to access other housing.
“It is vital that local authorities work with landlords to provide the support services needed to help this demographic, as many are forced to move into shared accommodation.”